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RAJIV SHAKDHER, GIRISH KATHPALIA
Mange Ram Jain – Appellant
Versus
Income Tax Officer, Ward 36 (1), Delhi – Respondent
JUDGMENT
[Physical Hearing/Hybrid Hearing (as per request)]
Rajiv Shakdher, J. (Oral)
CM APPL. 26444/2023
1. Allowed, subject to just exceptions.
W.P.(C) 6761/2023 and CM APPL. 26445/2023 [Application filed on behalf of the petitioner seeking interim relief]
2. Issue notice.
2.1. Mr Sanjay Kumar, learned senior standing counsel accepts notice on behalf of the respondents/revenue.
3. Mr Kumar says that in view the directions that we propose to pass, he does not wish to file a counter-affidavit in the matter and he will argue the matter based on the record presently available with the court. Therefore, with the consent of the counsels for parties, the writ petition is taken up for hearing and final disposal of the case at this stage itself.
4. This writ petition concerns Assessment Year (AY) 2019-20.
5. The petitioner has assailed the show-cause notice dated 31.03.2023 issued under Section 148A(b) of the Income Tax Act, 1961 [in short, "the Act"].
5.1. In addition, thereto, challenge is also laid to the order dated 17.04.2023 passed under Section 148A(d) of the Act and the consequential notice of even date i.e., 17.04.2023 issued under Section 148 of the Act.
6. The principal griev
Procedural fairness and consideration of petitioner's response in assessment proceedings under the Income Tax Act
Compliance with procedural requirements and the right to a fair hearing are essential in proceedings under the Income Tax Act, 1961.
The court emphasized the importance of considering the petitioner's reply and according a personal hearing before passing an assessment order under the Income Tax Act, 1961.
The court affirmed that taxpayers are entitled to adequate time to respond to notices under the Income Tax Act, and failure to consider timely responses constitutes a violation of statutory duties.
The court emphasized the requirement to grant a minimum of seven days to respond to a notice under the Income Tax Act and the obligation to furnish material available with the Assessing Officer to th....
Failure to adhere to the directions in the Standard Operating Procedure (SOP) for Assessment Unit, which led to the quashing of the impugned notices and order.
The failure to consider the petitioner's reply and grant a hearing led to the setting aside of the assessment order and the direction for a fair hearing and speaking order by the Assessing Officer.
The Assessing Officer must provide adequate reasoning for reassessment actions and ensure compliance with natural justice principles.
The court established that failure to supply information required for assessment invalidates the reassessment notice, supporting due process in tax proceedings.
The court emphasized the importance of correct premise, sharing of relevant information, and clear understanding of the provisions of the Income Tax Act, 1961 in reassessment proceedings.
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